Indo-Pak trade balance remains in favour of India

• Pakistan imports to India stood at $286.675 million in the first half of FY20 as compared to $865.370mn.
• The trade balance between the neighbouring countries stood at negative $269.875mn, in favour of India.

The trade relations between Pakistan and India have taken a toll due to the escalating tensions between the two countries, however, the balance still remains in favour of India.

As per the latest data released by the State Bank of Pakistan (SBP), Pakistan imports to India stood at $286.675 million in the first half of FY20 as compared to $865.370mn recorded in same period last year, showing a 66 percent decline.

However, the problem lies in the export section, after Pakistan exports to India during the period was recorded at a meager $16.8 million as compared to $213m witnessed in first half of 2018-19, showing a decline of over 90 percent.

This suggests that the trade balance between the neighbouring countries stood at negative $269.875mn, in favour of India.

In April 2019, in order to avoid a severe crisis vis-à-vis availability of life-saving drugs in the local market, the government lifted the ban on import of medicines and raw material from India. Two SROs issued by Ministry of Commerce stipulate that the ban on trade with India would remain effective but would not apply to therapeutic products regulated by Drug Regulatory Authority of Pakistan (Drap).